| ECBK Stock | | | USD 12.50 0.28 2.29% |
This module uses fundamental data of ECB Bancorp to approximate the value of its Beneish M Score. ECB Bancorp M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Check out
ECB Bancorp Piotroski F Score and
ECB Bancorp Altman Z Score analysis.
For more information on how to buy ECB Stock please use our
How to buy in ECB Stock guide.
At this time, ECB Bancorp's
Long Term Debt To Capitalization is quite stable compared to the past year.
Debt Equity Ratio is expected to rise to 1.49 this year, although the value of
Debt To Assets will most likely fall to 0.1. At this time, ECB Bancorp's
Cash Per Share is quite stable compared to the past year.
POCF Ratio is expected to rise to 23.87 this year, although
Book Value Per Share will most likely fall to 10.57.
At this time, it appears that ECB Bancorp is an unlikely manipulator. The earnings manipulation may begin if ECB Bancorp's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by ECB Bancorp executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of ECB Bancorp's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-3.05
Beneish M Score - Unlikely Manipulator
| Elasticity of Receivables | |
| Financial Leverage Condition | |
ECB Bancorp Beneish M-Score Indicator Trends
The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if ECB Bancorp's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
ECB Bancorp Beneish M-Score Driver Matrix
One of the toughest challenges investors face today is learning how to quickly synthesize historical
financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between ECB Bancorp's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards ECB Bancorp in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find ECB Bancorp's degree of accounting gimmicks and manipulations.
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About ECB Bancorp Beneish M Score
M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled
The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed
financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.
About ECB Bancorp Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze ECB Bancorp's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of ECB Bancorp using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at
the intrinsic value of ECB Bancorp based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing
financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our
fundamental analysis page.
Pair Trading with ECB Bancorp
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if ECB Bancorp position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in ECB Bancorp will appreciate offsetting losses from the drop in the long position's value.
The ability to find closely correlated positions to ECB Bancorp could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace ECB Bancorp when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back ECB Bancorp - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling ECB Bancorp to buy it.
The correlation of ECB Bancorp is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as ECB Bancorp moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if ECB Bancorp moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for ECB Bancorp can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
When determining whether ECB Bancorp is a good investment, qualitative aspects like company
management, corporate governance, and ethical practices play a significant role. A
comparison with peer companies also provides context and helps to understand if ECB Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Ecb Bancorp Stock.
Highlighted below are key reports to facilitate an investment decision about Ecb Bancorp Stock: Check out
ECB Bancorp Piotroski F Score and
ECB Bancorp Altman Z Score analysis.
For more information on how to buy ECB Stock please use our
How to buy in ECB Stock guide.
Note that the ECB Bancorp information on this page should be used as a complementary analysis to other ECB Bancorp's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the
Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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When running ECB Bancorp's price analysis, check to
measure ECB Bancorp's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy ECB Bancorp is operating at the current time. Most of ECB Bancorp's value examination focuses on studying past and present price action to
predict the probability of ECB Bancorp's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move ECB Bancorp's price. Additionally, you may evaluate how the addition of ECB Bancorp to your portfolios can decrease your overall portfolio volatility.
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Is ECB Bancorp's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost
the valuation of ECB Bancorp. If investors know ECB will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about ECB Bancorp listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth | Earnings Share | Revenue Per Share | Quarterly Revenue Growth | Return On Assets |
The market value of ECB Bancorp is measured differently than its book value, which is the value of ECB that is recorded on the company's balance sheet. Investors also form their own opinion of ECB Bancorp's value that differs from its market value or its book value, called intrinsic value, which is ECB Bancorp's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because ECB Bancorp's market value can be influenced by many factors that don't directly affect ECB Bancorp's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between ECB Bancorp's value and its price as these two are different measures arrived at by different means. Investors typically determine
if ECB Bancorp is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, ECB Bancorp's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.